Starter Homes Are Out of Reach And Higher Housing Prices Aren't Helping

Starter homes in LA are few and far between, according to a recent report released by Trulia.

First-time buyers are having an increasingly difficult time buying homes in LA, Zillow chief economist Svenja Gudell tells Bisnow.

Renters now spend half of their monthly incomes on rent, according to Svenja. As a result, attempting to save for a down payment can be nearly impossible, she says.

Home prices are on the rise, "bumping up the amount buyers need to put down," Svenja tells us.

In LA as well as Orange County, home prices have gone up 6.9% from a year ago with home prices in the US rising at more than double the rate of incomes in January, according to the LA Times.

The median home value in metro LA is around $560k. Svenja says assuming a 20% down payment, a potential buyer would have to come up with more than $100k just to move into a home.

The options for first-time buyers on budgets are limited since inventory is low, something also making it difficult for homeowners looking to upgrade to a bigger house, according to Svenja.

However, many Millennials still want to buy a home because they "associate it with the American Dream, they’re just waiting a bit longer to do so," Svenja says. [LAT]

Continue reading this story with a free account

Log in or register
Related Topics: Svenja Gudell , Trulia , Zillow
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

D.C. Mayor-Elect Wants Options Beyond Therme's $550M Spa Proposal

Deutsche Finance Offices Raided In Connection With BVK's U.S. Real Estate Investments

GSA Taps Cushman & Wakefield Veteran As Federal Real Estate Head

Multifamily Design: Maintaining The 'Romance Of The Garden'

Building Management Systems Weren't Built For AI Data Centers. This Optimizer Could Be The Solution

Bottoms Wins Georgia Governor's Race With Pledge To Boost Affordable Housing

Big Money Bets On SoCal Industrial As 2 Portfolio Sales Top $3B

Democrats Win Congress As America's Data Center Backlash Hits The Ballot Box

U.S. Hotel RevPAR Surges 7% In Q3, But Expect Easing From Here

Stock Sell-Off, Bond Market Jitters Signal Financing Trouble For AI Data Centers

Suburban D.C. County Weighs Microhousing As Affordability Salve

Fannie Mae, Freddie Mac Rewrite Underwriting Standards For NYC's Rent Freeze